Core Insights - AAR Corp. has demonstrated strong performance with a one-year total return of 43.28%, and the recent share sale by a senior vice president occurred at a weighted average price of $97.05 per share, slightly above the market close of $97.03 [1][4][7] Company Overview - AAR Corp. provides a range of aviation aftermarket support services, including inventory management, maintenance, repair, overhaul, and engineering services, primarily targeting defense and government markets [1][5] - The company operates within the global aerospace and defense sector, leveraging its expertise to support both commercial and government fleets, which contributes to stable, recurring revenue streams from long-term contracts [5] Transaction Details - The recent transaction involved the direct sale of 23,621 shares by senior vice president Christopher Jessup, which represented 26.42% of his direct common stock holdings [2][4] - This sale was executed following the exercise of 14,652 options for common stock, indicating that the primary intent was liquidity from option conversion rather than a discretionary reduction of equity exposure [3][6] Financial Performance - In the most recent quarter, AAR Corp. reported revenue of $795 million, reflecting a 16% year-over-year increase, with adjusted diluted EPS of $1.18 and adjusted EBITDA growth of 23% [7] - Margin expansion was attributed to the Parts Supply and Repair & Engineering segments, while recent acquisitions have provided long-term visibility through contracted demand [7] Market Context - The share sale is viewed as routine and option-driven, occurring against a backdrop of improving fundamentals, expanding margins, and durable demand in the aviation sector [8]

Core Insights - Diamond Hill Capital's "Select Fund" underperformed the Russell 3000 Index in Q3 2025, returning 4.98% compared to the index's 8% gain [1] - The fund highlighted Huntington Ingalls Industries, Inc. (NYSE:HII) as a key investment, noting its strong performance and potential in the defense sector [2][3] Company Performance - Huntington Ingalls Industries, Inc. (NYSE:HII) achieved a one-month return of 4.34% and a 52-week gain of 19.13%, closing at $298.42 per share with a market capitalization of $11.71 billion on October 29, 2025 [2] - The company is recognized as a top contributor to the fund's performance in Q3, with improvements in employee attrition and strong demand anticipated from the US Department of Defense [3] Market Position and Outlook - Huntington Ingalls is well-positioned to meet the Department of Defense's needs, particularly in light of potential conflicts in the Pacific, which is expected to drive demand for the next five-plus years [3] - Despite its potential, Huntington Ingalls is not among the top 30 most popular stocks among hedge funds, with 36 hedge fund portfolios holding its stock at the end of Q2 2025, an increase from 33 in the previous quarter [4]